2025 (9) TMI 676

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....ad and is engaged in business as an Authorized dealer of Hero Motocorp Ltd [HMC Ltd.]. That as an Authorized dealer of HMC Ltd. the Appellant is selling two wheelers manufacture by HMC Ltd. and providing free and paid services to customers. Apart from the Taxable Service receipts on two wheelers, the Appellant has also taxable receipts of commission from Insurance & Finance Companies for promoting their business. The Appellant is registered with the Service Tax Department and is paying service tax. 3. That the Appellant is providing services to the parties below and out of which few services are taxable and few are not taxable, the same are as under:- Sr. No. Name of Party Type of Payments 1. INDUSIND BANK LIMITED Incentive receiv....

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....663 630699 11964 Gross Total 14540195 13996774 15708985   2229191 1891113 338078 That receipts from all the Parties as per Form 26AS are taxable except the part of receipts from HMC Ltd., is exempted. The bifurcation of exempted & taxable receipts and detail of service tax on the taxable amounts after taking due input credit of the taxes paid is as under:- Year Gross receipts as per 26AS Taxable Receipts S/T Payable Input ST. paid 2014-15 3288804 3426499 423315 20246 403270 2015-16 3950520 3717902 513310 69218 447183 2016-17 4047546 2956139 443871 33910 409961 2017-18 3253325 3996745 648788 11996 636792 Total 14540195 13314511 2029284 135370 18....

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....ing on behalf of the Appellant submits that the learned Commissioner (Appeals) has wrongly & illegally confirmed the denial of the valid Input Tax Credit of Rs.1,35,370/- ignoring the fact that the Appellant has duly paid the Service Tax charged on services obtained for business. The copy of all the bills and ledger A/C of all the years involved were submitted during the hearing and the learned Commissioner (Appeals) ignored the documents and denied the Input Tax Credit. The copy of ledger A/C with all the bills on which service tax was paid are enclosed as Annexure 5 to 8. In view of the above facts and submissions, the Input Tax Credit of Rs.1,35,370/- deserved to be allowed. The penalty of Rs.3,38,078/- imposed under Section 78 is arbitr....

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....devoid of any merits may be dismissed. 9. Heard both the sides and perused the appeal records. 10. I find that on the basis of third party data and Form 26AS statement, it was alleged that the Appellant had short paid service tax to the tune of Rs.3,38,078/- during the financial year 2014-15 to 2017-18 (upto June, 2017). The adjudication order was passed ex parte. It is the case of the Appellant that the demand confirmed by the Adjudicating Authority is illegal as all the receipts shown in Form 26AS statement also include exempted services. Input Tax Credit of Rs.1,35,370/- has been denied. It is their submission that the same was rightly claimed as per respective bills on which service tax was paid. The learned Advocate vehemently argued....